HMRC believe that companies are failing to report the amount dividend income on their self assessment tax returns. It has come to light that companies financial statements show a large drop in the profit and loss reserves despite the company making a profit, suggesting that a dividend has been paid out.
HMRC will be writing to company owners from the 4th February 2024 to inform they may have underdeclared dividend income.
HMRC have asked recipients of the letter to either report any undeclared dividend income or let them know that no further dividend income is to be declared. If you file returns yourself you can make a disclosure using the link below or speak to your tax agent who will be able to help with this.
If you fail to respond to this letter, HMRC may open a compliance check and charge higher penalties.
If you believe you have underdeclared dividend income, you can make a disclosure here.
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